Convert Private into public Limited Company

Overview of the Private Limited to Public Limited Company Conversion

Converting a private limited company to a public limited company is a big step toward developing the firm and getting more cash. A public limited company can issue public shares, which allows it to raise capital from a large number of investors. However, this procedure necessitates compliance with a number of legal and regulatory criteria, such as getting shareholder and Registrar of Companies (ROC) permission and amending the Memorandum and Articles of Association. Seek professional advice from specialists to guarantee a seamless and effective conversion of a private firm into a public one.

Convert a Private Limited Company to a Public Limited Company

A Public Limited firm is a firm with limited liability whose shares are openly exchanged and sold to the general public. To convert a private company to a public limited company under the Companies Act 2013, you must have at least three directors, seven shareholders, and a paid-up capital of five lakh rupees.

Limited Liability Company

A corporation whose stock is traded on a stock market and can be bought and sold by anybody. It is also known as a publicly traded firm.A public limited business can sell its stock to the general public.A public limited company is one that has limited liability and sells business shares to the general public, according to the Company Act 2013. Anyone can buy such a company’s equity through stock market trading or through IPOs (Initial Public Offerings).

Limited Liability Company

A privately held firm for small enterprises. The responsibility of members of a private limited corporation is limited to the amount of shares they own. A private limited company’s shares cannot be exchanged.

Advantages of a Public Limited Company

Transferring Files in a Hurry

A public limited company's shareholders can easily transfer their shares. All they have to do is submit the share transfer paperwork and provide the buyer the share certificate. Transferring a share to another corporate structure is a time-consuming operation.

Raise Funding

The benefit of the public limited structure is that it may be used to generate funds from the general public via shares. This would, however, necessitate a stock exchange listing. Fixed deposits, debentures, and convertible debentures can be issued to the general public by any public limited company.

Increased Credibility

Public limited corporations must publish their audited financial statements, notify regulatory organizations of structural changes, and have annual general body meetings for all shareholders. These compliance measures give the company a lot of credibility.